The Government has spent more than K1 billion on fuel subsidies since April 2026 to cushion Papua New Guineans from rising international fuel prices, with the Goods and Services Tax (GST) exemption on fuel to remain in place until December 31.
Prime Minister James Marape announced this on Tuesday, November 10, saying the Government had supported consumers for seven months through direct fuel subsidies before the programme ended on November 8.
He said the Government would continue to provide some relief through the GST exemption, even as it balances the cost of living support against funding for essential public services.
Mr Marape compared fuel prices in Papua New Guinea with those in other countries, saying petrol in Port Moresby was selling at approximately K6.19 per litre, compared with K12.47 in Singapore, K9.02 in New Zealand, K7.35 in Fiji and K7.29 in Australia.He said the differences reflected the impact of international fuel prices and the Government’s spending to shield local consumers from the full increase.
The Prime Minister said fuel assistance was part of a wider package of measures aimed at reducing household expenses.These include Government support for school fees, income tax relief for low-income earners, GST exemptions on specified essential household items, minimum wage increases and stamp duty relief for eligible first-home buyers.
The Government is also supporting efforts to keep electricity affordable, the acquisition of new Air Niugini aircraft and assistance to communities affected by drought, he said.Mr Marape said the cost of these interventions had to be balanced against other national spending priorities, including hospitals, schools, roads, agriculture and essential services.
He acknowledged the financial pressures facing households but said the Government would continue to explore ways to provide assistance within its available resources.The Government’s fuel relief announcement comes as households and businesses continue to face pressure from the cost of essential goods and services.
